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Comparative Analysis of the Innovation Level of European Union Member States
Abstract
Theoretical background: The European Union (EU) considers innovation performance to be one of the major factors in determining the competitiveness of its economy in the coming years. Hence, it is reasonable to seek methods for assessing the innovation level of EU member states and their growth drivers.
Purpose of the article: The aim of this study was to make a comparative assessment of the innovation level in European Union countries and the identification of its drivers.
Research methods: The survey was conducted based on the European Innovation Scoreboard pertaining to the years 2016–2023. We performed a hierarchical cluster analysis, which allowed us to reveal member state groups with a similar innovation level. To identify the key and uncorrelated drivers responsible for the clustering of EU-27, we performed a principal component analysis.
Main findings: We identify three groups of countries that share similar innovation levels. The innovation leaders were eight member states: Belgium, Denmark, Germany, Luxembourg, Netherlands, Austria, Finland, and Sweden. Research has shown that elements associated with the academic community, high-skilled workforce, collaboration of businesses with scientists, and information and communications technology skills are most significant for the diversification of the innovation level of EU-27 in 2023. In addition, digitalisation, innovators and firm investments also contribute greatly to innovation levels. This study contributes to the discussion of the innovation level of EU member states and identifies the key drivers that differentiate EU countries in this respect.
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DOI: http://dx.doi.org/10.17951/h.2025.59.2.161-181
Date of publication: 2025-09-02 13:03:32
Date of submission: 2024-07-11 10:26:31
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